Daily Markets Briefing: STI up 0.21%

Expect muted gains today.

According to OCBC, while the STI staged a rebound yesterday as expected, continued weakness on Wall Street overnight is likely to keep overall sentiment fairly cautious, and hence limit near-term upside.

Here’s more from OCBC:

As before, we believe that investors are more likely to be looking to sell into strength, especially ahead of the increased uncertainty ahead of the Brexit vote next week.

For now, we peg the key hurdle at 2800, ahead of a minor one at 2820; on the downside, we would be keeping a close watch on the key 100-DMA support (currently hovering around 2766) as a convincing breach could send the index sliding back towards 2700.

While overall volume improved 19% on 1.85b units traded, total value slipped 6% to S$814.4m, and average value/unit also tumbled 21% to S$0.44, with losers having a slight lead over the gainers.